Bill Text: MI SB0307 | 2017-2018 | 99th Legislature | Introduced


Bill Title: Economic development; corridor improvement; capture of certain mills for library purposes; modify. Amends secs. 2 & 18 of 2005 PA 280 (MCL 125.2872 & 125.2888).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-04-20 - Referred To Committee On Finance [SB0307 Detail]

Download: Michigan-2017-SB0307-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 307

 

 

April 20, 2017, Introduced by Senators MACGREGOR, BRANDENBURG, ROBERTSON and JONES and referred to the Committee on Finance.

 

 

     A bill to amend 2005 PA 280, entitled

 

"Corridor improvement authority act,"

 

by amending sections 2 and 18 (MCL 125.2872 and 125.2888), section

 

2 as amended by 2013 PA 232 and section 18 as amended by 2016 PA

 

507.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2. As used in this act:

 

     (a) "Advance" means a transfer of funds made by a municipality

 

to an authority or to another person on behalf of the authority in

 

anticipation of repayment by the authority. Evidence of the intent

 

to repay an advance may include, but is not limited to, an executed

 

agreement to repay, provisions contained in a tax increment

 

financing plan approved prior to the advance, or a resolution of

 

the authority or the municipality.

 

     (b) "Assessed value" means the taxable value as determined

 


under section 27a of the general property tax act, 1893 PA 206, MCL

 

211.27a.

 

     (c) "Authority" means a corridor improvement authority created

 

under section 4(1) or a joint authority created under section 4(2).

 

     (d) "Board" means the governing body of an authority.

 

     (e) "Business district" means an area of a municipality zoned

 

and used principally for business.

 

     (f) "Captured assessed value" means the amount in any 1 year

 

by which the current assessed value of the development area,

 

including the assessed value of property for which specific local

 

taxes are paid in lieu of property taxes as determined in section

 

3(e), exceeds the initial assessed value. The state tax commission

 

shall prescribe the method for calculating captured assessed value.

 

     (g) "Chief executive officer" means the mayor of a city, the

 

president of a village, or the supervisor of a township.

 

     (h) "Development area" means that area described in section 5

 

to which a development plan is applicable.

 

     (i) "Development plan" means that information and those

 

requirements for a development area set forth in section 21.

 

     (j) "Development program" means the implementation of the

 

development plan.

 

     (k) "Fiscal year" means the fiscal year of the authority.

 

     (l) "Governing body" or "governing body of a municipality"

 

means the elected body of a municipality having legislative powers

 

or, for a joint authority created under section 4(2), the elected

 

body of each municipality having legislative powers that is a

 

member of the joint authority.


     (m) "Initial assessed value" means the assessed value, as

 

equalized, of all the taxable property within the boundaries of the

 

development area at the time the resolution establishing or

 

amending the tax increment financing plan is approved, as shown by

 

the most recent assessment roll of the municipality for which

 

equalization has been completed at the time the resolution is

 

adopted. The initial assessed value may be modified once during the

 

term of the tax increment financing plan through an amendment as

 

provided in section 18(4) after the tax increment financing plan

 

fails to generate captured assessed value for 3 consecutive years

 

due to declines in assessed value. Property exempt from taxation at

 

the time of the determination of the initial or amended assessed

 

value shall be included as zero. For the purpose of determining

 

initial or amended assessed value, property for which a specific

 

local tax is paid in lieu of a property tax shall not be considered

 

to be property that is exempt from taxation. The initial assessed

 

value of property for which a specific local tax was paid in lieu

 

of a property tax shall be determined as provided in section 3(e).

 

     (n) "Library capture obligation" means a bond, note, or

 

similar instrument evidencing debt for borrowed money issued by the

 

authority before January 1, 2017, which pledges payment of the debt

 

by the authority from an identified source of revenue.

 

     (o) (n) "Land use plan" means a plan prepared under former

 

1921 PA 207, former 1943 PA 184, or a site plan under the Michigan

 

zoning enabling act, 2006 PA 110, MCL 125.3101 to 125.3702.

 

     (p) (o) "Municipality" means 1 of the following:

 

     (i) A city.


     (ii) A village.

 

     (iii) A township.

 

     (iv) A combination of 2 or more cities, villages, or townships

 

acting jointly under a joint authority created under section 4(2).

 

     Sec. 18. (1) If the authority determines that it is necessary

 

for the achievement of the purposes of this act, the authority

 

shall prepare and submit a tax increment financing plan to the

 

governing body of the municipality. The plan shall include a

 

development plan as provided in section 21, a detailed explanation

 

of the tax increment procedure, the maximum amount of bonded

 

indebtedness to be incurred, and the duration of the program, and

 

shall be in compliance with section 19. The plan shall contain a

 

statement of the estimated impact of tax increment financing on the

 

assessed values of all taxing jurisdictions in which the

 

development area is located. The plan may provide for the use of

 

part or all of the captured assessed value, but the portion

 

intended to be used by the authority shall be clearly stated in the

 

tax increment financing plan. The authority or municipality may

 

exclude from captured assessed value growth in property value

 

resulting solely from inflation. The plan shall set forth the

 

method for excluding growth in property value resulting solely from

 

inflation.

 

     (2) Approval of the tax increment financing plan shall comply

 

with the notice, hearing, and disclosure provisions of section 22.

 

If the development plan is part of the tax increment financing

 

plan, only 1 hearing and approval procedure is required for the 2

 

plans together.


     (3) Before the public hearing on the tax increment financing

 

plan, the governing body shall provide a reasonable opportunity to

 

the taxing jurisdictions levying taxes subject to capture to meet

 

with the governing body. The authority shall fully inform the

 

taxing jurisdictions of the fiscal and economic implications of the

 

proposed development area. The taxing jurisdictions may present

 

their recommendations at the public hearing on the tax increment

 

financing plan. The authority may enter into agreements with the

 

taxing jurisdictions and the governing body of the municipality in

 

which the development area is located to share a portion of the

 

captured assessed value of the development area.

 

     (4) A tax increment financing plan may be modified if the

 

modification is approved by the governing body upon notice and

 

after public hearings and agreements as are required for approval

 

of the original plan.

 

     (5) Except for a development area located in a qualified

 

development area, not more than 60 days after the public hearing on

 

the tax increment financing plan, the governing body in a taxing

 

jurisdiction levying ad valorem property taxes that would otherwise

 

be subject to capture may exempt its taxes from capture by adopting

 

a resolution to that effect and filing a copy with the clerk of the

 

municipality proposing to create the authority. The resolution

 

shall take effect when filed with the clerk and remains effective

 

until a copy of a resolution rescinding that resolution is filed

 

with that clerk. If a separate millage for public library purposes

 

was levied in effect or approved by electors before January 1,

 

2017, and all library capture obligations of the authority are


paid, then the levy is exempt from capture under this act, unless

 

the library board or commission allows all or a portion of its

 

taxes levied to be included as tax increment revenues and subject

 

to capture under this act under the terms of a written agreement

 

between the library board or commission and the authority. The

 

written agreement shall be filed with the clerk of the

 

municipality. However, if a separate millage for public library

 

purposes was levied in effect or approved by electors before

 

January 1, 2017, and the authority alters or amends the boundaries

 

of the development area, adopts a new development plan or finance

 

plan, or extends the duration of, or otherwise modifies or amends,

 

the existing development plan or finance plan, then the library

 

board or commission may, not later than 60 days after a public

 

hearing required for that action is held under this subsection,

 

act, exempt all or a portion of its taxes from capture by adopting

 

a resolution to that effect and filing a copy with the clerk of the

 

municipality that created the authority. For ad valorem property

 

taxes or specific local taxes attributable to those ad valorem

 

property taxes levied for a separate millage for public library

 

purposes approved by the electors after December 31, 2016, a

 

library board or commission may allow all or a portion of its taxes

 

levied to be included as tax increment revenues and subject to

 

capture under this act under the terms of a written agreement

 

between the library board or commission and the authority. The

 

written agreement shall be filed with the clerk of the

 

municipality. However, if the library was created under section 1

 

or 10a of 1877 PA 164, MCL 397.201 and 397.210a, or established


under 1869 LA 233, then any action of the library board or

 

commission under this subsection shall have the concurrence of the

 

chief executive officer of the city that created the library to be

 

effective.

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